BILL NUMBER: AB 1548	CHAPTERED  10/10/99

	CHAPTER   915
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 3, 1999
	PASSED THE SENATE   SEPTEMBER 1, 1999
	AMENDED IN SENATE   AUGUST 26, 1999
	AMENDED IN SENATE   AUGUST 17, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 8, 1999
	AMENDED IN SENATE   JUNE 10, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 20, 1999
	AMENDED IN ASSEMBLY   APRIL 15, 1999

INTRODUCED BY   Assembly Member Cardoza
   (Coauthor:  Assembly Members Florez, Reyes, Thomson, and Wiggins)

                        FEBRUARY 26, 1999

   An act to amend Sections 110005, 110050, 110475, 110480, 110485,
112040, 112115, and 113355 of, to amend and renumber Sections 110780
and 110785 of, to add Sections 109947, 110466, 110467, 110472,
110473, 110474, and 110661 to, and to repeal and add Sections 110460
and 110470 of, the Health and Safety Code, relating to environmental
health.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1548, Cardoza.  Environmental health:  food.
   Existing law, the Sherman Food, Drug, and Cosmetic Law, contains
various provisions regarding the packaging, labeling, and advertising
of food, drugs, and cosmetics.
   Existing law requires every person upon first engaging in the
manufacturing, packing, or holding of processed food in this state to
immediately register with the State Department of Health Services
and to pay a fee, for deposit into the Food Safety Fund, to be used
by the department, upon appropriation by the Legislature, for the
purposes of providing funds necessary to carry out and implement the
inspection provisions of the law.  Existing law also authorizes local
health departments to conduct inspections of certain food processing
establishments.
   This bill would revise and recast these provisions.  It would,
among other things, provide for the inspection and reinspection of
food processing facilities, as defined, and would revise the fees
charged for new and renewal registrations including the imposition of
different fees in specified counties.  The bill would also vest the
authority to conduct certain inspections in the State Department of
Health Services.
   Existing law imposes, until January 1, 2001, a $100 food safety
fee on every person who is engaged in the manufacture, packing, or
holding of processed food.
   This bill would extend that fee until January 1, 2003.
   By creating new crimes and revising the definition of existing
crimes, this bill would impose a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 109947 is added to the Health and Safety Code,
to read:
   109947.  "Food processing facility" means any facility operated
for the purposes of manufacturing, packing, or holding processed
food.  Food processing facility does not include a food facility as
defined in Section 113785, or any facility exclusively storing,
handling, or processing dried beans.
  SEC. 2.  Section 110005 of the Health and Safety Code is amended to
read:
   110005.  "Potentially hazardous food" means any food capable of
supporting growth of infectious or toxigenic micro-organisms when
held at temperatures above 45 degrees Fahrenheit.
  SEC. 3.  Section 110050 of the Health and Safety Code is amended to
read:
   110050.  The Food Safety Fund is hereby created as a special fund
in the State Treasury.  All moneys collected by the department under
subdivision (c) of Section 110466 and Sections 110470 and 110485 and
under Article 7 (commencing with Section 110810) of Chapter 5 shall
be deposited in the fund, for use by the department, upon
appropriation by the Legislature, for the purposes of providing funds
necessary to carry out and implement the inspection provisions of
this part relating to food, the provisions relating to education and
training in the prevention of microbial contamination pursuant to
Section 110485, and the registration provisions of Article 7
(commencing with Section 110810) of Chapter 5.
  SEC. 4.  Section 110460 of the Health and Safety Code is repealed.

  SEC. 5.  Section 110460 is added to the Health and Safety Code, to
read:
   110460.  No person shall engage in the manufacture, packing, or
holding of any processed food in this state unless the person has a
valid registration from the department, except those engaged
exclusively in the storing, handling, or processing of dried beans.
The registration shall be valid for one calendar year from the date
of issue, unless it is revoked.  The registration shall not be
transferable.
  SEC. 6.  Section 110780 of the Health and Safety Code is amended
and renumbered to read:
   110461.  It is unlawful for any person to manufacture, pack, or
hold processed food in this state unless in a food processing
facility duly registered, as provided in this part.
  SEC. 7.  Section 110785 of the Health and Safety Code is amended
and renumbered to read:
   110462.  It is unlawful for any person to willfully make a false
statement or representation, or knowingly fail to disclose a fact
required to be disclosed in the application for registration or
renewal of registration, as provided in this article.
  SEC. 8.  Section 110466 is added to the Health and Safety Code, to
read:
   110466.  (a) Commencing January 1, 2000, the department shall use
the resources provided by the registration fees assessed by this
article to inspect new and registered food processing facilities to
determine compliance with this part.  The department shall target the
inspections and adjust their scope, depth, and frequency based on
the department's statewide assessment of public health risk
potential.  In assessing public health risk potential, the department
shall consider, at a minimum, the potential and actual health risks
associated with processed foods manufactured, packed, or held in this
state, and the food safety practices and compliance histories of
persons who manufacture, pack, or hold processed foods in this state.

   (b) Commencing January 1, 2001, the department, pursuant to this
chapter, shall conduct an annual inspection of each registered food
processing facility and inspect each new food processing facility
prior to issuing a new registration pursuant to Section 110460.  This
annual inspection requirement may be adjusted or waived based on an
assessment of the food processing facility pursuant to subdivision
(a).
   (c) The department may perform one or more reinspections of each
new and registered food processing facility as necessary to prevent
repeated or continuing violations of this part and for the purposes
of approving the issuance of a new registration.  The department
shall not charge a separate fee for a first reinspection.  The
department shall charge a fee of seventy-five dollars ($75) per hour
to cover the costs of performing the second and subsequent
reinspections of the same food processing facility within the same
registration period.
  SEC. 9.  Section 110467 is added to the Health and Safety Code, to
read:
   110467.  Any violation of any provision of this part or any
regulation adopted pursuant to this part shall be grounds for denying
a registration or for suspending or revoking a registration.
Proceedings for the denial, suspension, or revocation of a
registration shall be conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, and the department shall have all the powers
granted in that chapter.
  SEC. 10.  Section 110470 of the Health and Safety Code is repealed.

  SEC. 11.  Section 110470 is added to the Health and Safety Code, to
read:
   110470.  A registration application provided by the department
shall be completed annually and accompanied by a nonreturnable
registration fee.
   The fee for a new or renewal registration for a food processing
facility shall be as follows:


Holding Food Only:
              Fee        Fee           Fee         Fee
              through    commencing    commencing  commencing
              12/31/99   01/01/2000    01/01/2001  01/01/2000
                         through       and         Los Angeles,
                         12/31/2000    ongoing     Orange, San
                                                   Bernardino
                                                   Counties and
                                                   the City of
                                                   Vernon

Size of Facility:
0-5,000      sq. ft.   $257.85    $300          $300        $300
5,001-10,000 sq. ft.    257.85     350           400         350
Over  10,000 sq. ft.    386.77     500           600         500

Manufacturing or Packing Food:
               Fee        Fee           Fee         Fee
               through    commencing    commencing  commencing
               12/31/99   01/01/2000    01/01/2001  01/01/2000
                          through       and         Los Angeles,
                          12/31/2000    ongoing     Orange, San
                                                    Bernardino
                                                    Counties and
                                                    the City of
                                                    Vernon

Number of       Size of
Employees       Facility
0-2                                 $257.85    $300    $300    $300
3-5             0-5,000 sq. ft.      257.85     350     400     350
6-20            0-5,000 sq. ft.      386.77     500     600     500
More than 20    0-5,000 sq. ft.      515.70     700     900     700
3-5             Over 5,000 sq. ft.   257.85     500     600     500
6-20            Over 5,000 sq. ft.   515.70     700     900     700
21-50           Over 5,000 sq. ft.   644.52     935   1,250     850
51-100          Over 5,000 sq. ft.   644.52     985   1,350     850
101-200         Over 5,000 sq. ft.   644.52   1,035   1,450     850
201 or more     Over 5,000 sq. ft.   644.52   1,085   1,550     850

   A penalty of 1 percent per month shall be added to any
registration fee not paid when due.  The fee amount shall be adjusted
annually pursuant to Section 100425.
  SEC. 12.  Section 110472 is added to the Health and Safety Code, to
read:
   110472.  The department, in consultation with the California
Conference of Directors of Environmental Health (CCDEH),
representatives of the food processing industry, representatives of
the local health departments of, Los Angeles, Orange, and San
Bernardino Counties, and the City of Vernon, and any other person or
entity deemed appropriate by the department shall develop, implement,
and evaluate the processed food program in accordance with this
chapter.  In developing the processed food program, consideration
shall be given to all aspects of the program provided for in this
chapter.
  SEC. 13.  Section 110473 is added to the Health and Safety Code, to
read:
   110473.  Notwithstanding the requirements of Section 110470, any
person who is required to be registered under this chapter and is
operating the food processing facility exclusively for charitable
purposes, and meets the requirements of Section 214 of the Revenue
and Taxation Code, shall not be required to submit any fees required
by Section 110470.
  SEC. 14.  Section 110474 is added to the Health and Safety Code, to
read:
   110474.  Nothing in this chapter shall relieve a person who has a
valid registration to manufacture, pack, or hold processed food
issued by the department from any other requirements for licensure,
registration, or certification under Article 7 (commencing with
Section 110810), Article 12 (commencing with Section 111070), or Part
6 (commencing with Section 111940). The registration fee due to the
department under this article from a person who holds one or more
licenses, registrations, or certificates issued by the department
pursuant to Article 12 (commencing with Section 111070) or Chapters 5
to 10, inclusive of Part 6 (commencing with Section 112150) shall be
the fee for the single highest cost license, registration, or
certificate only. Cannery inspection fees collected pursuant to
Section 112730 and organic processed food registration fees collected
pursuant to Section 110875 shall be in addition to any registration
fees that may be collected under this article.
  SEC. 15.  Section 110475 of the Health and Safety Code is amended
to read:
   110475.  Any person registered pursuant to this article shall
immediately notify the department of any change in the information
reported on the registration application.
  SEC. 16.  Section 110480 of the Health and Safety Code is amended
to read:
   110480.  The registration provisions of this  article shall not
apply to any person whose manufacturing, packing, or holding of
processed food is limited solely to temporarily holding processed
foods for up to seven days for further transport if the foods are not
potentially hazardous foods, as defined in Section 110005, or to any
person whose manufacturing, packing, or holding of processed food is
limited solely to activities authorized by any of the following:
   (a) A valid bottled water or water vending machine license issued
pursuant to Article 12 (commencing with Section 111070).
   (b) A valid pet food license issued pursuant to Chapter 10
(commencing with Section 113025) of Part 6.
   (c) A valid permit issued pursuant to Chapter 4 (commencing with
Section 113700) of Part 7 to a food facility including a food
facility that manufactures, packs, or holds processed food for sale
at wholesale, provided the food facility that manufactures, packs, or
holds processed food for sale at wholesale does not meet any of the
following conditions:
   (1) Has gross annual wholesale sales of processed foods of more
than 25 percent of total food sales.
   (2) Sells processed foods outside the jurisdiction of the local
health department.
   (3) Sells processed foods that require labeling pursuant to this
part.
   (4) Processes or handles fresh seafood, frozen seafood held in
bulk for further processing, or fresh or frozen raw shellfish.
   (5) Salvages processed foods for sale other than at the retail
food facility.
   (d) A valid cold storage license issued pursuant to Chapter 6
(commencing with Section 112350) of Part 6.
   (e) A valid cannery license issued pursuant to Chapter 8
(commencing with Section 112650) of Part 6.
   (f) A valid shellfish certificate issued pursuant to Chapter 5
(commencing with Section 112150) of Part 6.
   (g) A valid frozen food locker plant license issued pursuant to
Chapter 7 (commencing with Section 112500) of Part 6.
   (h) A valid winegrower's license or wine blender's license
pursuant to Division 9 (commencing with Section 23000) of the
Business and Professions Code.
   (i) A valid milk products plant, margarine, imitation ice cream,
imitation ice milk, or a products resembling milk products plant
license, issued pursuant to Division 15 (commencing with Section
32501) of the Food and Agricultural Code.
   (j) A valid permit issued by a local health department to operate
a processing establishment, as defined in Section 111955, that only
holds or warehouses processed food, pursuant to Article 1 (commencing
with Section 111950) of Chapter 4 of Part 6, provided that all of
the following conditions are met:
   (1) The warehouse does not manufacture or pack processed food.
   (2) The warehouse does not hold fresh seafood, frozen seafood held
in bulk for further processing, or fresh or frozen raw shellfish.
   (3) The warehouse is not operated as an integral part of a food
processing facility required to be registered pursuant to Section
110460.
   (4) The warehouse facilities are located entirely within the area
under the jurisdiction of the local health department.
   (5) The warehouse does not salvage food as the primary business.
   (k) This section shall not be construed to limit the authority of
Los Angeles, San Bernardino, and Orange Counties, or of the City of
Vernon, to conduct any inspections otherwise authorized by Chapter 4
(commencing with Section 111950) of Part 6.
  SEC. 17.  Section 110485 of the Health and Safety Code is amended
to read:
   110485.  (a) Every person who is engaged in the manufacture,
packing, or holding of processed food in this state shall pay a food
safety fee of one hundred dollars ($100) to the department in
addition to any fees paid pursuant to Section 110470.
   (b) Revenue received pursuant to this section shall be deposited
in the Food Safety Fund created pursuant to Section 110050.  A
penalty of 10 percent per month shall be added to any food safety fee
not paid when due.
   (c) Upon appropriation, the food safety fees deposited in the Food
Safety Fund shall be used by the department to assist in developing
and implementing education and training programs related to food
safety.  These programs shall be developed in consultation with
representatives of the food processing industry.  Implementation
shall include education and training in the prevention of microbial
contamination.
   (d) This section does not apply to companies exclusively involved
in flour milling, dried bean processing, or in the drying or milling
of rice, or to those individual registrants the director determines
should not be assessed because substantial economic hardship would
result to those registrants.  For the purposes of this subdivision,
the substantial hardship exemption shall be extended only to
registrants whose wholesale gross annual income from the registered
business is twenty thousand dollars ($20,000) or less.
   (e) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
  SEC. 18.  Section 110661 is added to the Health and Safety Code, to
read:
   110661.  Any food is misbranded if it is manufactured, packed, or
held in this state in a food processing facility not duly registered
as provided in this part, except for food from facilities exclusively
storing, handling, or processing dry beans.
  SEC. 19.  Section 112040 of the Health and Safety Code is amended
to read:
   112040.  (a) Prior to January 1, 2001, the department, its
inspectors and agents, and all local health officers and inspectors
may at all times enter any building, room, basement, cellar, or other
place occupied or used, or suspected of being occupied or used, for
the production, preparation, manufacture, storage, sale, or
distribution of food, and inspect the premises and all utensils,
implements, receptacles, fixtures, furniture, and machinery used.
   (b) Commencing January 1, 2001, only the department, its
inspectors and agents, and the local health officers and inspectors
of Los Angeles, San Bernardino, and Orange Counties and the City of
Vernon may exercise the authority to enter and inspect granted in
subdivision (a) except as provided in subdivision (c).
   (c) Commencing January 1, 2001, the local health officer or
inspector of each city or county, or city and county may exercise the
authority to enter and inspect granted in subdivision (a) for the
sole purpose of inspecting a food processing establishment that only
holds warehouses processed food, provided that:
   (1) The warehouse does not manufacture or pack processed food.
   (2) The warehouse does not hold fresh seafood, frozen seafood held
in bulk for further processing, or fresh or frozen raw shellfish.
   (3) The warehouse is not operated as an integral part of a food
processing facility required to be registered pursuant to Section
110460.
   (4) The warehouse facilities are located entirely within the area
under the jurisdiction of the local health department.
   (5) The warehouse does not salvage food as the primary business.
   (d) All inspections of food processing establishments conducted by
local health departments shall be reported to the department within
60 days.  The department shall consider this information when
scheduling the department's inspection activities.
  SEC. 20.  Section 112115 of the Health and Safety Code is amended
to read:
   112115.  This article, with the exception of any licensing
provisions, may be enforced by any local enforcement division, which
shall be construed to mean the local health department, headed by the
duly appointed, qualified and acting health officer of any county,
city or city and county.  The territory may include one or more
counties, cities, or cities and counties.
  SEC. 21.  Section 113355 of the Health and Safety Code is amended
to read:
   113355.  (a) The primary responsibility for enforcement of this
article shall be vested in the local health officers; county
agricultural commissioners may participate in enforcement.  The State
Departments of Health Services, Industrial Relations, and Food and
Agriculture may also enforce this article.
   (b) Any agency enforcing this article shall report any violation
to all field offices of the Employment Development Department located
in the county where the violation occurs.  The report shall identify
the employer responsible for the violation, the nature of the
violation, and the location of the food crop growing and harvesting
operation where the violation occurs.  The Employment Development
Department shall not refer persons for employment to any employer or
food crop growing and harvesting operation identified in the report
until the agency reporting the violation certifies that the violation
has been corrected.
  SEC. 22.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
